Loans Dashboard

Bases We Need To Know The Bank's Lending For Stocks And The Bankruptcy
<- @ Page {margin: 0.79in} P {margin-bottom: 0.08in} -> OK, before you even start to reduce your forehead, I need to define some concepts for you. First, what the heck is a loan out? When a company goes into bankruptcy protection, they do so with the plan to exit bankruptcy. To exit, they will need funding. This type of financing called leveraged loans and distressed debt. The next question is, why would anyone lend money to an organization that is likely to fail and go into default. The response to this question is that the higher the risk, the higher the return on investment and hedge funds like what they are called leveraged hedge fund loans.
<- @ Page {margin: 0.79in} P {margin-bottom: 0.08in} -> According to the article in the Wall Street Journal, which has touched the debtor in possession, or DIP financing, 189 companies in default of last exposure years, causing a spike in demand for credit financing of output. But who are these companies? In many cases, are household names, such as Six Flags amusement parks. Six Flags entered into Chapter 11 bankruptcy, and it's exciting, it was verified credit of approximately $ 830 group funded by three major players, like JP Morgan Chase. Six Flags is a good example of a company, which has theme parks set record levels of participation, but because of debt with a maturity no one wants to refinance leverage, were forced to default and failure to obtain the withdrawal. Emerging from bankruptcy, a new market and a new class of funds available.
So where is the money is hard? In essence, leveraged loans defeated the high-yield bonds during the past year. So, investors are plowing money funds leveraged loan, high yield and dragging them credit. It is not just moving money from high-yield credit markets, is a new money market flows. Some numbers can be found online, that is to say that the leveraged loan market attracted nearly $ 1.4 billion this year and over 450 million have fled high-yield credit markets.
Because of the soaring market leveraged loans, is the issuance of its debt substantially. Some estimates show that emissions of corporate debt fell by almost 50% over the same period last year.